Center for Health Market Innovations (CHMI)

Programs

National Kidney Transplant Institute (NKTI)/Hemodialysis Center-Fresenius Medical Care Lease Agreement

last updated Jul 30, 2012

Overview

Implementing organization: 
National Kidney Transplant Institute (NKTI)
Implementation Partner(s): 
Fresenius Medical Care Philippines
Legal Status: 
Public-private partnership
Year Launched: 
2003
Stage: 
Existing/expansion stage
Income Level of Target Population: 
All income levels

Funding

Primary Source of Funding: 
Government
Additional Source(s) of Funding: 
Out-of-pocket payments

Scale

Personnel Employed: 
50-99
Number of Clients Served: 
>600/month equal to 41,372 treatments in 2011
Number of Facilities Operated/Networked: 
2-Inpatient and Outpatient Centers
Summary: 

The National Kidney Transplant Institute (NKTI) is a tertiary medical specialty center specializing in the treatment of renal diseases. The project involves the long-term lease agreement with Freseneus Medical Care Philippines Inc. as its private service provider to furnish the hospital with state-of-the-art machines for patients suffering from end-stage renal diseases.

Key program components: 

A build-operate-transfer (BOT) scheme is a type of financing for the long-term requirement of a government infrastructure project whereby the government provides a long-term concession to a private partner which arranges for the building, operation, and eventual transfer of the infrastructure in return for which the government agrees to pay an annual unitary payment to the private partner until the concession ends. Hospital BOT or its other variants (design-finance-build-operate-transfer, design-finance-build-operate-own, or others) is a form of performance based financing innovation since the concession agreement specifies the performance benchmarks that the contractor is legally obligated to meet in exchange for an annual unitary payment from the government, until the end of the concession (usually 15-20 years).

The NKTI Hemodialysis Center is a Php 54 million facility constructed as a Public-Private Partnership between a government hospital and a private investor. The project involved a long-term lease agreement with Freseneus Medical Care Philippines, Inc. as its private service provider.

Through this scheme, NKTI was able to acquire the latest technology in dialysis treatment thus, expanding its services to more patients. At the same time, the services provided in this new Hemodialysis Center are relatively more affordable since NKTI is a government hospital. In 2006, out of 92 BOT projects listed by the government, only the NKTI was listed for agreement focusing on health. Thus, there is still a large potential for this scheme to grow and help in increasing access to health services.

Additional Information
Read a case study on the National Kidney Transplant Institute (NKTI)/Hemodialysis Center here

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